Genpact Reports Results for 2012 Full Year and Fourth Quarter

Genpact Reports Results for 2012 Full Year and Fourth Quarter
Revenues of $1.9 Billion, Up 19% for FY '12 and Up 15% for 4Q '12
Adjusted Income from Operations of $313 Million, Up 18% for FY '12 and Up 9%
for 4Q '12
Cash Flow from Operations of $311 Million, Up 17% for FY '12 and Up 13% for 4Q
'12
PR Newswire
NEW YORK, Feb. 7, 2013
NEW YORK, Feb. 7, 2013 /PRNewswire/ -- Genpact Limited (NYSE: G), a global
leader in business process management and technology services, today announced
financial results for the fourth quarter and full year ended December31,
2012.
(Logo: http://photos.prnewswire.com/prnh/20120501/NY98560LOGO )
Key Financial Results – Full-Year 2012
oRevenues were $1.9 billion, up 18.8% from $1.6 billion in 2011.
oNet income attributable to Genpact Limited shareholders was $178.2
million, compared to $184.3 million in 2011; net income margin for 2012
was 9.4%, compared to 11.5% in 2011.
oThe effective tax rate was 30.6%, up from 27.7% in 2011.
oDiluted earnings per common share were $0.78, compared to $0.81 per share
in 2011.
oAdjusted income from operations increased 18.4% to $313.1 million, up from
$264.5 million in 2011.
oAdjusted income from operations margin was 16.5%, unchanged from 2011.
oAdjusted diluted earnings per share were $0.96, compared to $0.98 in 2011.
Key Financial Results – Fourth Quarter 2012
oRevenues were $507.7 million, up 14.7% from $442.7 million in the fourth
quarter of 2011.
oNet income attributable to Genpact Limited shareholders was $53.4 million,
compared to $61.1 million in the fourth quarter of 2011; net income margin
for the fourth quarter of 2012 was 10.5%, compared to 13.8% in the fourth
quarter of 2011.
oDiluted earnings per common share were $0.23, compared to $0.27 per share
in the fourth quarter of 2011.
oAdjusted income from operations totaled $83.9 million, up from $77.1
million in the fourth quarter of 2011.
oAdjusted income from operations margin was 16.5%, compared to 17.4% in the
fourth quarter of 2011.
oAdjusted diluted earnings per share were $0.25, compared to $0.32 in the
fourth quarter of 2011.
N.V. 'Tiger' Tyagarajan, Genpact's president and CEO said, "Our results in the
fourth quarter and full year 2012 demonstrated strong client demand and
profitable growth. In 2012, we delivered robust growth in revenues and
adjusted operating income. In addition, we expanded and strengthened our
capabilities across our enterprise services offerings, industry vertical
markets and geographies with both investment initiatives and acquisitions. We
also provided our shareholders a substantial return of capital in the form of
a $502 million special cash dividend. All of these accomplishments build upon
our solid foundation and position us to take advantage of the large market
opportunity available to us and long runway to drive sustained growth in
revenues and cash flows."
Revenues from Global Clients grew 25.8% for the full year 2012 and 19.2% in
the fourth quarter. Business process management revenues from Global Clients
grew 21.3% for the full year, and 21.1% in the fourth quarter and were led by
growth inSmart Decision Services of 31.3% for the full year and 21.0% for the
fourth quarter. Revenues from Global Clients represented approximately 73.9%
of Genpact's total revenues in 2012, with the remaining 26.1% of revenues
coming from GE. GE revenues increased 2.8% for the full year 2012 and 3.1% in
the fourth quarter.
As of the end of 2012, 65 client relationships each contributed revenues of $5
million or more in the last 12 months, up from 56 such relationships as of
December 31, 2011. As of the end of 2012, 11 client relationships each
contributed revenues of $25 million or more in the last 12 months, up from
nine such client relationships as of December 31, 2011.
Approximately 76.6% of Genpact's revenues for the full year 2012 and 76.8% for
the fourth quarter came from business process management services, compared to
78.8% for 2011 and 75.9% for the fourth quarter of 2011. Revenues from IT
services represented approximately 23.4% of total revenues for the full year
2012 and 23.2% for the fourth quarter, compared to 21.2% for 2011 and 24.1%
for the fourth quarter of 2011.
Genpact generated $310.7 million of cash from operations in 2012 and $101.2
million in the fourth quarter of 2012, up from $266.6 million of cash from
operations in 2011 and $89.5 million in the fourth quarter of 2011, primarily
due to better working capital management resulting from lower days sales
outstanding in the fourth quarter. Genpact had approximately $477.5 million in
cash and cash equivalents and short-term deposits as of December 31, 2012.
In the third quarter of 2012, Genpact paid a special cash dividend of $2.24
per share, for an aggregate amount of approximately $502 million, to holders
of Genpact common shares and facilitated the sale of approximately 26% of its
outstanding shares to Bain Capital Partners from its original sponsors. The
special dividend was funded through a combination of surplus cash on Genpact's
balance sheet and a portion of the proceeds of borrowings under a new $925
million senior credit facility. The costs and expenses associated with the
above transactions are reflected in Genpact's results for 2012, and adversely
impacted net income for the year.
As of December31, 2012, Genpact had approximately 60,200 employees worldwide,
an increase from approximately 55,400 at the end of 2011. The attrition rate
for the entire year, measured from day one, was 25%, down from 30% in
2011.Revenue per employee in 2012 was $34,000, compared to $34,100 in 2011.
2013 Outlook
Tyagarajan continued, "We remain cautious, as are many of our clients, about
the global economy in the near term, even as we see signs of improvement, and
we are bullish on the long term. For the full year 2013, we expect revenues to
be in a range of $2.15 – $2.20 billion, and adjusted operating income margin
in a range of 15.8% – 16.3%. This guidance reflects the revenue contribution
and slight margin dilution for the year resulting from the recently-announced
acquisition of JAWOOD. Without the anticipated impact of JAWOOD, we would have
expected 2013 adjusted operating income margin to be in a range of 16.0% to
16.5%."
Conference Call to Discuss Financial Results
Genpact management will host an hour-long conference call beginning at 8:00
a.m. ET on February 8, 2013 to discuss the company's performance for the
periods ended December 31, 2012. To participate, callers can dial
1-866-713-8395 from within the U.S. or +1 (617) 597-5309 from any other
country. Thereafter, callers will be prompted to enter the participant code,
90489804.
A live webcast of this event will also be made available on the Genpact
Investor Relations website at http://investors.genpact.com. For those who
cannot participate in the call, a replay and podcast will be available on the
Genpact website after the end of the call. A transcript of the call will also
be made available via the website.
About Genpact
Genpact Limited (NYSE: G), a global leader in business process management and
technology services, leverages the power of smarter processes, smarter
analytics and smarter technology to help its clients drive intelligence across
their enterprise. Genpact's Smart Enterprise Processes (SEP^SM) framework,
its unique science of process combined with deep domain expertise in multiple
industry verticals, leads to superior business outcomes. Genpact's Smart
Decision Services deliver valuable business insights to its clients through
targeted analytics, reengineering expertise, and advanced risk management.
Making technology more intelligent by embedding it with process and data
insights, Genpact also offers a wide range of technology services. Driven by
a passion for process innovation and operational excellence built on its Lean
and Six Sigma DNA and the legacy of serving GE for more than 15 years, the
company's 60,000+ professionals around the globe deliver services to its more
than 600 clients from a network of 70 delivery centers across 20 countries
supporting more than 30 languages. For more information, visit
www.genpact.com,
Safe Harbor
This press release contains certain statements concerning our future growth
prospects and forward-looking statements, as defined in the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of 1995. These
statements involve a number of risks, uncertainties and other factors that
could cause actual results to differ materially from those in such
forward-looking statements. These risks, uncertainties and other factors
include but are not limited to a slowdown in the economies and sectors in
which our clients operate, a slowdown in the business process management and
information technology services sectors, the risks and uncertainties arising
from our past and future acquisitions, our ability to manage growth, factors
which may impact our cost advantage, wage increases, changes in tax rates and
tax legislation, our ability to attract and retain skilled professionals,
risks and uncertainties regarding fluctuations in our earnings, general
economic conditions affecting our industry as well as other risks detailed in
our reports filed with the U.S. Securities and Exchange Commission, including
Genpact's Annual Report on Form10-K. These filings are available at
www.sec.gov. Genpact may from time to time make additional written and oral
forward-looking statements, including statements contained in our filings with
the Securities and Exchange Commission and our reports to shareholders.
Although Genpact believes that these forward-looking statements are based on
reasonable assumptions, you are cautioned not to put undue reliance on these
forward-looking statements, which reflect management's current analysis of
future events and should not be relied upon as representing management's
expectations or beliefs as of any date subsequent to the time they are made.
Genpact does not undertake to update any forward-looking statements that may
be made from time to time by or on behalf of Genpact.
Contact
Investors: Bharani Bobba
+1 (203) 300-9230
bharani.bobba@genpact.com
Media: Gail Marold
+1 (919) 345-3899
gail.marold@genpact.com
GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
(In thousands, except per share data and share count)
AsofDecember31, AsofDecember 31,
2011 2012
Assets
Current assets
Cash and cash equivalents $ 408,020 $ 459,228
Accounts receivable, net 258,498 451,960
Accounts receivable from related party, 143,921 29
net
Short term deposits - 18,292
Deferred tax assets 46,949 48,489
Due from related party 10 -
Prepaid expenses and other current 127,721 150,769
assets
Total current assets $ 985,119 $ 1,128,767
Property, plant and equipment, net 180,504 200,362
Deferred tax assets 91,880 91,383
Investment in equity affiliates 220 416
Customer-related intangible assets, net 85,987 84,748
Marketing-related intangible assets, 24,240 21,585
net
Other intangible assets, net 3,061 6,054
Goodwill 925,339 956,064
Other assets 107,037 116,548
Total assets $ 2,403,387 $ 2,605,927
GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
(In thousands, except per share data and share count)
AsofDecember31, AsofDecember31,
2011 2012
Liabilities and equity
Current liabilities
Short-term borrowings $ 252,000 $ 80,000
Current portion of long-term debt 29,012 4,982
Current portion of capital lease 1,005 1,301
obligations
Current portion of capital lease 762 -
obligations payable to related party
Accounts payable 20,951 18,652
Income taxes payable 20,118 22,304
Deferred tax liabilities 35 538
Due to related party 464 -
Accrued expenses and other current 337,481 390,041
liabilities
Total current liabilities $ 661,828 $ 517,818
Long-term debt, less current portion 73,930 656,879
Capital lease obligations, less current 846 2,533
portion
Capital lease obligations payable to 855 -
related party, less current portion
Deferred tax liabilities 1,905 6,068
Due to related party 9,154 -
Other liabilities 219,186 250,848
Total liabilities $ 967,704 $ 1,434,146
Shareholders' equity
Preferred shares, $0.01 par value, - -
250,000,000 authorized, none issued
Common shares, $0.01 par value,
500,000,000 authorized, 222,347,968 and
225,480,172 issued and outstanding as 2,222 2,253
of December 31, 2011 and 2012,
respectively
Additional paid-in capital 1,146,203 1,202,448
Retained earnings 605,386 281,982
Accumulated other comprehensive income (320,753) (318,272)
(loss)
Genpact Limited shareholders' equity 1,433,058 1,168,411
Noncontrolling interest 2,625 3,370
Total equity 1,435,683 1,171,781
Commitments and contingencies
Total liabilities and equity $ 2,403,387 $ 2,605,927
GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share data and share count)
Year Ended December 31
2010 2011 2012
Net revenues
Net revenues from services - related $ 479,231 $ 484,464 $ 550
party
Net revenues from services - others 779,732 1,115,972 1,901,421
Total net revenues 1,258,963 1,600,436 1,901,971
Cost of revenue
Services 788,522 1,004,899 1,157,766
Total cost of revenue 788,522 1,004,899 1,157,766
Gross profit $ 470,441 $ 595,537 $ 744,205
Operating expenses:
Selling, general and administrative 282,102 357,959 456,611
expenses
Amortization of acquired intangible 15,959 19,974 23,233
assets
Other operating (income) expense, net (5,484) 1,360 16
Income from operations $ 177,864 $ 216,244 $ 264,345
Foreign exchange (gains) losses, net (1,137) (35,099) (13,146)
Other income (expense), net 5,246 10,716 (14,499)
Income before Equity-method investment $ 184,247 $ 262,059 $ 262,992
activity, net and income tax expense
Equity-method investment activity, net 1,013 327 (17)
Income before income tax expense $ 183,234 $ 261,732 $ 263,009
Income tax expense 34,203 70,656 78,419
Net Income $ 149,031 $ 191,076 $ 184,590
Net income attributable to 6,850 6,782 6,374
noncontrolling interest
Net income attributable to Genpact $ 142,181 $ 184,294 $ 178,216
Limited shareholders
Net income available to Genpact Limited 142,181 184,294 178,216
common shareholders
Earnings per common share attributable
to Genpact Limited common shareholders
Basic $ 0.65 $ 0.83 $ 0.80
Diluted $ 0.63 $ 0.81 $ 0.78
Dividend per share $ - $ - $ 2.24
Weighted average number of common shares
used in computing earnings per common
share attributable to Genpact Limited
common shareholders
Basic 219,310,327 221,567,502 223,696,567
Diluted 224,838,529 226,354,403 229,532,516
GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
Year ended December 31,
2010 2011 2012
Operating activities
Net income attributable to Genpact $ 142,181 $ 184,294 $ 178,216
Limited shareholders
Net income attributable to noncontrolling 6,850 6,782 6,374
interest
Net Income $ 149,031 $ 191,076 $ 184,590
Adjustments to reconcile net income to
net cash provided by (used for) operating
activities:
Depreciation and amortization 57,881 58,357 56,089
Amortization of debt issue costs 385 1,952 8,079
Amortization of acquired intangible 16,275 20,132 23,305
assets
Reserve (release) for doubtful (1,334) 6,298 3,878
receivables
Reserve for mortgage loans 12 52 108
Gain on business acquisition (247) - -
Unrealized (gain) loss on revaluation of (284) (18,276) (13,700)
foreign currency asset/liability
Equity-method investment activity, net 1,013 327 (17)
Stock-based compensation expense 17,514 27,767 32,152
Deferred income taxes (5,400) (7,981) (10,028)
Others, net 181 5,322 6,471
Change in operating assets and
liabilities:
Increase in accounts receivable (50,414) (46,314) (36,171)
Increase in other assets (25,932) (10,461) (20,525)
Increase/(Decrease) in accounts payable (2,631) 6,800 (4,380)
Increase/(Decrease) in accrued expenses (2,560) 27,517 38,478
and other current liabilities
Increase in income taxes payable 6,447 10,345 1,775
Increase/(Decrease) in other liabilities 3,161 (6,301) 40,556
Net cash provided by operating activities $ 163,098 $ 266,612 $ 310,660
Investing activities
Purchase of property, plant and equipment (55,171) (35,776) (83,337)
Proceeds from sale of property, plant and 1,239 916 500
equipment
Investment in affiliates (2,324) - (205)
Purchase of short term investments (107,324) (129,458) -
Proceeds from sale of short term 162,940 206,443 -
investments
Short term deposits placed (6,530) - (43,978)
Redemption of short term deposits 16,325 - 25,638
Payment for business acquisitions, net of (42,575) (577,233) (56,488)
cash acquired
Net cash used for investing activities $ (33,420) $ (535,108) $ (157,870)
Financing activities
Repayment of capital lease obligations (4,861) (2,821) (2,279)
Proceeds from long-term debt - 120,000 675,000
Repayment of long-term debt (45,000) (40,000) (106,688)
Proceeds from Short-term borrowings - 260,000 80,000
Repayment of Short-term borrowings (165) (8,000) (253,004)
Proceeds from issuance of common shares 24,826 12,840 26,227
under stock based compensation plans
Payment for net settlement of stock based - - (2,103)
awards
Dividend paid - - (501,620)
Direct cost incurred in relation to Debt - (9,115) (15,266)
Distribution to noncontrolling interest (7,065) (6,805) (5,760)
Net cash provided by (used for) financing $ (32,265) $ 326,099 $ (105,493)
activities
Effect of exchange rate changes 17,887 (53,617) 3,911
Net increase in cash and cash 97,413 57,603 47,297
equivalents
Cash and cash equivalents at the 288,734 404,034 408,020
beginning of the period
Cash and cash equivalents at the end of $ 404,034 $ 408,020 459,228
the period
Supplementary information
Cash paid during the period for interest $ 1,617 $ 5,026 14,061
Cash paid during the period for income $ 40,466 $ 65,688 91,825
taxes
Property, plant and equipment acquired $ 1,968 $ 1,787 2,699
under capital lease obligation
GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
Three months ended
March31, June30, September30, December31,
2012 2012 2012
2012
(dollars in millions)
Statement of income data:
Total net revenues $435.5 $467.6 $491.2 $507.7
Cost of revenue 265.5 285.2 297.3 309.8
Gross profit 170.0 182.4 193.9 197.9
Income from operations 60.4 63.2 70.0 70.8
Income before Equity method
investment activity, netand 56.6 84.4 41.8 80.1
income tax expense
Net income attributable to
Genpact Limited $38.5 $61.1 $25.2 $53.4
commonshareholders
Three months ended
March31, June30, September30, December31,
2011 2011 2011 2011
(dollars in millions)
Statement of income data:
Total net revenues $ 330.6 $ 397.6 $ 429.6 $ 442.7
Cost of revenue 214.5 254.0 268.3 268.1
Gross profit 116.1 143.6 161.3 174.6
Income from operations 46.5 51.1 56.7 61.9
Income before equity-method
investment activity, net and 51.2 55.2 68.6 87.0
income tax expense
Net income attributable to $ 36.1 $ 39.0 $ 48.0 $ 61.1
Genpact Limited shareholders
Reconciliation of Adjusted Non-GAAP Financial Measures to GAAP Measures
To supplement the consolidated financial statements presented in accordance
with GAAP, this press release includes the following measures defined by the
Securities and Exchange Commission as non-GAAP financial measures: non-GAAP
adjusted income from operations, adjusted net income attributable to
shareholders of Genpact Limited, or adjusted net income, and adjusted diluted
earnings per share attributable to shareholders of Genpact Limited, or
adjusted diluted earnings per share. These non-GAAP measures are not based on
any comprehensive set of accounting rulesor principles and should not be
considered a substitute for or superior to, financial measures calculated in
accordance with GAAP, and may be different from non-GAAP measures used by
other companies. In addition, these non-GAAP measures, the financial
statements prepared in accordance with GAAP and the reconciliations of
Genpact's GAAP financial statements to such non-GAAP measures should be
carefully evaluated.
For its internal management reporting and budgeting purposes, Genpact's
management historically used financial statements that did not include
significant acquisition related expenses and amortization of acquired
intangibles on such acquisitions, for financial and operational
decision-making, to evaluate period-to-period comparisons or for making
comparisons of Genpact's operating results to that of its competitors.
As a result of frequent acquisitions of varying scale and size, it is
difficult to predict the expenses related to acquisitions and amortization of
the acquired intangibles on acquisitions. Therefore, with effect from July 1,
2012, for its internal management reporting and budgeting purposes, management
considers using financial statements that do not include expenses related to
all acquisitions and amortization of acquired intangibles on acquisitions for
financial and operational decision-making, to evaluate period-to-period
comparisons or for making comparisons of Genpact's operating results to that
of its competitors.
Besides this, for its internal management reporting and budgeting purposes,
management uses financial statements that do not include stock-based
compensation expense, amortization of acquired intangibles at formation in
2004, expenses related to change of shareholding and capital restructuring,
net of recovery from the selling shareholders, affiliates of General Atlantic
LLC and Oak Hill Capital Management LLC, or GA/OH (excluding expenses related
to the new credit facility) and withholding taxes relating to remittance of
funds between subsidiaries to partly fund the payment of the special cash
dividend in respect of capital restructuring, for financial and operational
decision-making, to evaluate period-to-period comparisons or for making
comparisons of Genpact's operating results to that of its competitors.
Moreover, because of varying available valuation methodologies, subjective
assumptions and the variety of award types that companies can use when
adopting ASC 718 "Compensation-Stock Compensation", Genpact's management
believes that providing financial statements that do not include stock-based
compensation allows investors to make additional comparisons between Genpact's
operating results and those of other companies. In addition, Genpact's
management believes that providing non-GAAP financial measures that exclude
amortization of acquired intangibles, expenses related to all acquisitions and
amortization of acquired intangibles on acquisitions, expenses related to
change of shareholding and capital restructuring, net of recovery from GA/OH
(excluding expenses related to the new credit facility) and withholding taxes
relating to remittance of funds between subsidiaries to partly fund the
payment of the special cash dividend in respect of capital restructuring,
allows investors to make additional comparisons between Genpact's operating
results and those of other companies. Genpact also believes that it is
unreasonably difficult to provide its financial outlook in accordance with
GAAP for a number of reasons including, without limitation, its inability to
predict its future stock-based compensation expense under ASC 718, the
amortization of intangibles associated with further acquisitions, acquisition
related expenses, expenses related to change of shareholding and capital
restructuring, net of recovery from GA/OH (excluding expenses related to new
credit facility), and withholding taxes relating to remittance of funds
between subsidiaries to partly fund the payment of the special cash dividend
in respect of capital restructuring, if any. Accordingly, Genpact believes
that the presentation of non-GAAP adjusted income from operations and adjusted
net income, when read in conjunction with the Company's reported results, can
provide useful supplemental information to investors and management regarding
financial and business trends relating to its financial condition and results
of operations.
A limitation of using non-GAAP adjusted income from operations and adjusted
net income versus income from operations and net income attributable to
shareholders of Genpact Limited calculated in accordance with GAAP is that
non-GAAP adjusted income from operations and adjusted net income excludes
costs, namely, stock-based compensation, that are recurring. Stock-based
compensation has been and will continue for the foreseeable future to be a
significant recurring expense in Genpact's business. Management compensates
for this limitation by providing specific information regarding the GAAP
amounts excluded from non-GAAP adjusted income from operations and adjusted
net income and evaluating such non-GAAP financial measures with financial
measures calculated in accordance with GAAP.
The following tables show the reconciliation of these adjusted financial
measures from GAAP for the three months and year ended December31, 2011 and
2012:
Reconciliation of Adjusted Income from Operations
(Unaudited)
(In thousands)
YearendedDecember31, QuarterendedDecember31,
2011 2012 2011 2012
Income from operations as $ 216,244 $ 264,345 $ 61,928 $ 70,795
per GAAP
Add: Amortization of
acquired intangible assets 9,354 6,845 2,079 1,592
resulting from Formation
Accounting
Add: Amortization of
acquired intangible assets 7,865 10,739 2,949 2,791
relating to acquisitions
Add: Stock based 27,767 32,152 10,055 9,296
compensation
Add: Acquisition related 5,619 298 - -
expenses
Add: Other income 4,793 1,615 1,781 7,348
(expense)
Add: Consultancy, legal
and banker fees relating
to capital restructuring
(excluding expenses - 3,237 - 39
related to the new credit
facility), as recorded
under selling, general and
administrative expenses
Add: Consultancy, legal
and banker fees relating
to change of shareholding
(excluding expenses - 17,227 - 10,620
related to the new credit
facility), as recorded
under other income
(expense)
Less: Recovery from
selling shareholder of
consultancy, legal and
banker fees relating to
change of shareholding - (17,000) - (17,000)
(excluding expenses
related to the new credit
facility), as recorded
under other income
(expense)
Less: Equity-method (344) 17 (38) (7)
investment activity, net
Less: Net income
attributable to (6,782) (6,374) (1,611) (1,523)
noncontrolling interest
Adjusted income from $ 264,516 $ 313,101 $ 77,143 $ 83,951
operations
Reconciliation of Adjusted Net Income
(Unaudited)
(In thousands, except per share data)
YearendedDecember31, QuarterendedDecember31,
2011 2012 2011 2012
Net income as per GAAP $ 184,294 $ 178,216 $ 61,120 $ 53,401
Add: Amortization of
acquired intangible assets 9,354 6,845 2,079 1,592
resulting from Formation
Accounting
Add: Amortization of
acquired intangible assets 7,865 10,739 2,949 2,791
relating to acquisitions
Add: Stock based 27,767 32,152 10,055 9,296
compensation
Add: Acquisition related 5,619 298 - -
expenses
Add: Consultancy, legal
and banker fees relating
to capital restructuring
(excluding expenses - 3,237 - 39
related to the new credit
facility), as recorded
under selling, general and
administrative expenses
Add: Consultancy, legal
and banker fees relating
to change of shareholding
(excluding expenses - 17,227 - 10,620
related to the new credit
facility), as recorded
under other income
(expense)
Less: Recovery from
selling shareholder of
consultancy, legal and
banker fees relating to
change of shareholding - (17,000) - (17,000)
(excluding expenses
related to the new credit
facility), as recorded
under other income
(expense)
Add: Withholding taxes
relating to remittance of
funds between subsidiaries
to partly fund the payment - 2,300 - -
of special cash dividend
in respect of capital
restructuring
Less: Tax impact on
amortization of acquired (2,250) (1,564) (412) (374)
intangibles resulting from
Formation Accounting
Less: Tax impact on
amortization of acquired (2,674) (3,650) (1,004) (971)
intangibles resulting from
acquisitions
Less: Tax impact on stock (7,800) (8,032) (2,743) (1,028)
based compensation
Less: Tax impact on
acquisition related (1,435) (75) (41) -
expenses
Less: Tax impact on
consultancy and legal fees
relating to capital - (194) - (12)
restructuring (excluding
expenses related to the
new credit facility)
Adjusted net income $ 220,740 $ 220,499 $ 72,003 $ 58,354
Adjusted diluted earnings $ 0.98 $ 0.96 $ 0.32 $ 0.25
per share
SOURCE Genpact Limited
Website: http://www.genpact.com